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More emphasis on the smaller end of the market/less on ETFs?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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More emphasis on the smaller end of the market/less on ETFs?

Hi MM, I am not sure how much my preferences mirror those of other subscribers or not, however I notice an increasing emphasis on ETFs in the commentary you provide. Personally, I barely invest in ETFs except for one specific thematic holding that I have had for some time; and do trade them on occasion, but even then, they make up a very small proportion of what I trade. Conversely, I invest and trade extensively in the smaller end of the market (including very small/speculative). While I appreciate that this service is not geared towards the really small, speculative end of the market, would MM consider a move towards increasing commentary/advice on the smaller end of the market, including at least some suggestions in the small cap or larger microcap area of the market? You do comment on some of these stocks in response to subscriber questions but typically not from a position of having followed them extensively. You are the across the overall preferences of your subscribers, whereas I am not, but I imagine at least some would hold similar views to me. Interested in your thoughts on the above. Thanks, Darren

Answer

Hi Darren,

We’ll certainly take the suggestions on board, particularly around ETFs. Market Matters is, by and large, a stock-picking service, and individual stocks will remain our primary focus. We have been running one dedicated ETF report each week through ETF Friday, although you’re right that ETFs have also featured more regularly across our other reports. That reflects the rapid growth in ETFs and increasing subscriber interest, but rest assured, our core focus will remain on stocks.

On microcaps, this is a much more specialised part of the market. We don’t currently manage money in that space, so naturally we don’t allocate a significant amount of research time to it. Doing microcaps well requires specialist expertise, extensive company access and plenty of boots on the ground, and at this stage we simply don’t have the resources to cover that area to the standard we’d want. Never say never, but it’s not a near-term priority for us.

On subscriber preferences more broadly, I’m glad you raised it. We’re shortly going to survey our member base to gather feedback and ideas, which will also help shape the next evolution of the Market Matters website and service. Keep an eye out for that over the coming weeks.

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